Iberdrola's renewables arm reports 39% higher EBITDA for 2018

Source: Iberdrola SA (www.iberdrola.com)

February 20 (Renewables Now) - The renewables business of Spanish utility Iberdrola (BME:IBE) has experienced a 39.3% year-on-year jump in 2018 EBITDA thanks to growth in all markets driven by higher production.

Earnings before interest, tax, depreciation and amortisation (EBITDA) rose to EUR 2.44 billion (USD 2.77bn), with Amortisation and Provisions decreasing by 25.3% from last year to about EUR 1.05 billion mainly because of the lower value of the renewable business in the US due to the lower tax rate. This resulted in earnings before interest and tax (EBIT) at Renewables of some EUR 1.4 billion for 2018.

The table below gives more details about the segment’s financial performance in 2018.

Figures in EUR million

2018

vs 2017

Revenues

4,045

28%

Gross profit

3,610.9

29.4%

EBITDA

2,444.7

39.3%

EBIT

1,396.9

N/A

Iberdrola’s renewables business ended the year with an installed capacity of 29,177 MW globally. The company is currently building 6,606 MW of renewable energy plants, including 1,514 MW of offshore and 2,548 MW of onshore wind, 628 MW of solar and 1,916 MW of hydroelectric power.

The contribution by the Renewables segment helped Iberdrola’s full-year net profit exceed EUR 3 billion for the first time in 2018. The bottom line was up 7.5% year-on-year to EUR 3.014 billion.

From an operational point of view, the group highlighted the rate improvements in Brazil, the increase in onshore wind and hydropower production, the normalisation of the liberalised business conditions in the UK and the expanded commissioned capacity in Mexico.

Following the increase in annual net profit, Iberdrola said it has decided to raise the dividend payable to its shareholders for the full 2018 by 7.7% to EUR 0.351 gross per share.